BitGo, a digital asset management firm that started with a custodian service has acquired Lumina which is an integrated tax service provider for institutional clients. The acquisition move is seen as BitGo’s long-term plan in expanding its ecosystem and becoming a one-stop solution for institutional clients.
The announcement was made on April 16th. BitGo did not reveal the financial detail of the move, however. The integration of Lumina will be made into the BitGo Tax platform which is responsible for analyzing taxable events, calculate liabilities and risks of investments and compile a report for the clients.
The current integration of Lumina would ensure that institutional clients can do trades, lend their digital asset as well as stake it without leaving the platform.
BitGo acquires Lumina! “The acquisition and integration of the crypto-native financial platform’s Portfolio and Tax software is an industry game-changer,” said Mike Belshe, CEO, BitGo. https://t.co/FQSJYjIonz #digitalassets #Institutionalinvestors pic.twitter.com/RGqAGvXyvm
— BitGo (@BitGo) April 16, 2020
BitGo's CEO – Mike Belshe – believes that the integration of Lumina is a key step towards long term plans of becoming the go-to platform for institutional clients, explaining:
“Clients have digital asset accounts across many exchanges and wallet providers, and that can lead to a fragmented or incomplete view of their digital asset holdings.
BitGo clients now have a clear, intuitive dashboard with tax and reporting abilities, and these new services transform their ability to interact with digital assets.”
Lumina would be fully integrated into the BitGo ecosystem along with its employees and the former CEO of Lumina would now work as the chief product officer of BitGo. Lumina had raised a seed fund of $4 million in 2018.
Lumina has offered two major crypto taxing tools for institutional clients. One being Lumina Portfolio and other being Lumina Tax. These two tools were used by institutional players in the union to keep track of their diverse portfolio of crypto investments from a single dashboard.
BitGo Has Become a Reckoning Force in Crypto Space
BitGo started out as a crypto custodial service in 2013, but as of today, it is way more than just being a custodian service provider. BitGo started focusing on institutional clients and expanding its service ecosystem from 2018.
The first major step towards this goal of the expansion was the introduction of a secure off-chain settlement service along with a partnership with Genesis, allowing speedy execution of trades in the traditional market.
In February this year, BitGo acquired the security token platform – Harbour – to help its clients tokenize any form of equity. Being a regulated broker, dealer and transfer agent also ensured that BitGo did not have to acquire any operational regulatory license for the same. BitGo recently announced that user accounts will be backed by $100 million in insurance as well as opening lending services for 15 digital assets.
These aggressive expansion plans have started to bear fruit for BitGo as it has become a reckoning force in the decentralized space. At present BitGo’s dominance can be estimated from the fact that it is responsible for processing 20% of all Bitcoin transactions in the decentralized space at any given time.